1. Info-Tech Research Group1 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2016 Info-Tech Research Group Inc. Outsource the Service Desk If your outsourcing project is driven by cost alone, you will fail. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2016 Info-Tech Research Group

2. Info-Tech Research Group2 2 Outsourcing is no longer just a cost-saving move. Make sure you prepare accordingly. ANALYST PERSPECTIVE Service desk outsourcing has traditionally been a cost-cutting measure. The rise of the middle class in many offshore outsourcing hubs combined with the evolved role of the service desk to deliver more value to the business has changed the approach of outsourcing. Many organizations fail to understand that outsourcing excels when your processes have a certain degree of maturity. An outsourcing vendor is not always in the business of fixing problems; they provide managed services. Before you make the decision to outsource, you need to assess where your service desk is now, where you want it to go, and the cost and effort involved. Outsourcing without defining your requirements, processes, and escalations will result in services provided to match the outsourcer’s needs rather than your company needs. Outsourcing will create value for your organization. Just make sure the necessary work is completed beforehand. Sandi Conrad, Senior Director, Infrastructure Practice Info-Tech Research Group

3. Info-Tech Research Group3 3 This Research is Designed For:This Research Will Help You:This Research Is Designed For:This Research Will Help You: This Research Will Also Assist:This Research Will Help Them: Our understanding of the problem IT leaders and service desk managers interested in outsourcing the service desk or portions of service management. Business leaders involved in the IT department’s decision making. Understand the rationale behind outsourcing the service desk and decide whether it’s the right move for you. Organize and standardize the service desk to allow for a future move. Determine the right approach to moving the service desk to a different organization. Ensure that the service desk can be rebuilt if outsourcing is unsuccessful. Service desk staff affected by the moving of support services. Business executives who will need to be informed of the transition. Understand the impact that outsourcing would have on the service desk. Understand the potential benefits that outsourcing can bring to the organization.

4. Info-Tech Research Group4 4 Resolution Situation Complication Info-Tech Insight Executive summary In organizations where technical support is viewed as non-strategic, many see outsourcing as a cost-effective solution. However, outsourcing projects often fall short of their goals in terms of cost savings and support quality. Significant administrative work and up-front costs are required to outsource the service desk, and poor planning often results in project failure and decreases in end-user satisfaction A complete turnover of the service desk can result in lost knowledge and control over processes, and organizations without an exit strategy can struggle to bring their service desk back in house and return the confidence of end users. First decide if outsourcing is the correct step; there may be more preliminary work to do beforehand. Assess current processes and make necessary adjustments before developing an outsource/repatriate RFP. Clearly define the project and produce an RFP to provide to vendors. Plan for long-term success, not short-term gains. Prepare to retain some of the higher level service desk work. Develop a plan to execute and manage the transition. 1.If you are outsourcing only to save money, you will fail. The goal of outsourcing should be to improve key service metrics, not reduce costs. 2.Poor processes won’t disappear by outsourcing; they’ll merely be relocated. Take time to define processes and standardize workflows before outsourcing. 3.Don’t let the outsource service provider dictate your services and service levels. Set clear expectations for service up- front, and have an exit strategy in case service levels are not met.

5. Info-Tech Research Group5 5 Before a service desk can be outsourced, its processes and structure need to reach a certain degree of maturity. Perform a feasibility assessment to achieve an accurate understanding of the outsourcing project. A detailed outsourcing strategy ensures a clear vision of the project. This feeds into the development of a comprehensive RFP; the more detailed the RFP, the better your respondents’ proposals will match your needs. A thorough evaluation of these replies must be done before an outsourcing partner is selected. In the past decade, the role that an outsourced service desk plays in the success of the organization has shifted. The primary motivator for outsourcing has always been cost, but the role of the service desk for many organizations has transcended that of a ticket triage center. The role of the service desk has evolved and so has the role outsourcing plays Today, successful outsourcing transitions are predicated on the improvement of service metrics and delivering value to the business. Cost savings are still present, but these emerge as a by-product of the improvement in service metrics and execution of strategic projects from the service desk. Current Situation Where This Project Fits

6. Info-Tech Research Group6 6 Outsourcing can create substantial value for your organization A surveyA survey of 100 S&P 500 companies valued at $37.3 billion revealed that their IT outsourcing contracts averaged $1.1 billion, with an annual value of $47 million. The survey encompassed the outsourcing of all IT functions including the service desk. Firms that developed procedural learning (like standardizing processes) and relational learning (developing a relationship with a vendor prior to signing a contract) experienced significant returns on value creation. The average impact was $142 million per contract. Firms that failed to perform their due diligence actually incurred losses in value creation, but still maintained slight growth on their overall organizational value. The three-year difference in stock price of proactive firms outperformed reactive firms by over 36 percent. Outsource to create value for your organization, but perform the necessary legwork beforehand to realize the best value for dollar impact. Coordinating with your vendor in terms of continual learning and consistent documentation has long-term implications for value creation and financial performance.

7. Info-Tech Research Group7 7 1.1 Assess maturity 1.2 Assess cost 2.1 Build strategy 2.2 Develop RFP 3.1 Evaluate responses 3.2 Manage the transition Phase 1Phase 2Phase 3 Service Desk Process Maturity Assessment Tool Service Desk Efficiency Calculator Service Desk Outsourcing Strategy Template Service Desk Outsourcing RFP Template Service Desk Outsourcing RFP Scoring Tool Service Desk MSP Interview Template Follow this model to avoid outsourcing pitfalls Step involves greater effort and importance Step involves average effort and importance Many organizations make the decision to outsource without giving serious thought to their current situation, which only harms them in the long run. Our project model gives heavy emphasis to two of the six project steps to ensure key checkpoints are completed before the project moves forward. Look for this thought model at the beginning of each step to keep on track with the goals, outcomes, and overarching insights present throughout the step of the project. Many organizations make the decision to outsource without giving serious thought to their current situation, which only harms them in the long run. Our project model gives heavy emphasis to two of the six project steps to ensure key checkpoints are completed before the project moves forward. Look for this thought model at the beginning of each step to keep on track with the goals, outcomes, and overarching insights present throughout the step of the project.

8. Info-Tech Research Group8 8 Tools and templates support each step of the project Key Project Deliverables A service desk maturity assessment tool (Excel) to assess the maturity of your service desk functions and processes to determine whether outsourcing would be appropriate for your organization. A service desk outsourcing strategy (Word) to document your project goals, requirements, responsibilities, and metrics. A service desk outsourcing request for proposal (RFP) template (Word) to structure and document your current and future requirements from an outsourcing vendor. Project Structure

9. Info-Tech Research Group9 9 Get the whole team involved to avoid a pure business decision. One of the biggest issues with outsourcing is using cost as the ultimate determinant. Outsourcing affects the entire organization, not just the bottom line. Gain stakeholder buy-in from the beginning and present a compelling case motivated by a variety of factors, not just cost. Treat outsourcing like a relay race. In order to hand off your service desk to an outsourcer effectively, you need to have it operating at a certain level of maturity. Otherwise your organization won’t be up to speed, the transition won’t be smooth, and it will cost you the race. Map your project goals to the overarching insight for each step Make a list before you go shopping. Each organization is different and those that dictate the terms of the engagement with their vendor experience higher gains in value and a better relationship throughout the contract, reducing the (very expensive) risk of terminating the agreement. A clear strategy will allow your organization to proceed with confidence. All outsourcing contracts are finite. Plan for the inevitable expiry date. Exit strategies are often avoided due to the sensitive nature of contract termination. By defining a clear exit strategy at the beginning of the contract process, you hold your vendor accountable and make them work to retain your business through a re-negotiated contract. The vendor wants your business; make them work for it. A quality RFP covers all of the bases and ensures that the DNA of your strategy is embedded in the document. Avoid the “one-size-fits-all” solution provided by vendors; a customized solution yields better returns. Don’t bite on the least expensive proposal. It’s a common sales tactic to use a low price as an easy solution. Carefully evaluate the vendors on your short-list and ensure that SLAs, culture, and price all match to your organization. 1.1 2.1 1.2 3.1 2.2 3.2

10. Info-Tech Research Group10Info-Tech Research Group10 Info-Tech draws on the COBIT framework, which focuses on consistent delivery of IT services across the organization Evaluate, Direct, and Monitor EDM01 Ensure Governance Framework Setting and Maintenance EDM02 Ensure Benefits Delivery EDM03 Ensure Risk Optimization EDM04 Ensure Resource Optimization EDM05 Ensure Stakeholder Transparency Monitor, Evaluate, and Assess Align, Plan, and Organize APO01 Manage the IT Framework APO02 Manage Strategy APO03 Manage Enterprise Architecture APO04 Manage Innovation APO05 Manage Portfolio APO06 Manage Budget and Costs APO07 Manage Human Resources MEA01 Monitor, Evaluate, and Assess Performance and Conformance APO08 Manage Relationships APO09 Manage Service Agreements APO10 Manage Suppliers APO11 Manage Quality APO12 Manage Risks APO13 Manage Security Build, Acquire, and Implement BAI01 Manage Programs and Projects BAI02 Manage Requirements Definition BAI03 Manage Solutions Identification and Build BAI04 Manage Availability and Capacity BAI05 Manage Organizational Change Enablement BAI06 Manage Changes BAI07 Manage Change Acceptance and Transitioning MEA02 Monitor, Evaluate, and Assess the System of Internal Control BAI08 Manage Knowledge BAI09 Manage Assets BAI10 Manage Configuration Deliver, Service, and Support DSS01 Manage Operations DSS02 Manage Service Requests and Incidents DSS03 Manage Problems DSS04 Manage Continuity DSS05 Manage Security Services DSS06 Manage Business Process Controls MEA03 Monitor, Evaluate, and Assess Compliance with External Requirements

11. Info-Tech Research Group11Info-Tech Research Group11 This blueprint illustrates the scope of each phase of the project with relevant case studies Before it was acquired by Dell, Everdream was a rapidly growing software company that needed to outsource its service desk to cut costs. This case study focuses on the importance of matching the needs of your end users with the vendor. Lone Star College had a standardization issue across its six campuses and over 100,000 end users. This case study investigates the importance of matching your needs and tool(s) to your vendor’s. Australia’s largest household products company needed to streamline its service desk operations to focus on strategic projects. This in-depth case study focuses on how it developed an innovative solution with an outsourcing partner. A private medical college outsourced its after-hours support. Diligent monitoring revealed that SLAs were not being met. An ultimatum and exit strategy were instigated in an effort to solve the issue. 0 2 1 3

12. Info-Tech Research Group12 Info-Tech Research Group Helps IT Professionals To: Sign up for free trial membership to get practical solutions for your IT challenges www.infotech.com Quickly get up to speed with new technologies Make the right technology purchasing decisions – fast Deliver critical IT projects, on time and within budget Manage business expectations Justify IT spending and prove the value of IT Train IT staff and effectively manage an IT department “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment. - ARCS Commercial Mortgage Co., LP Toll Free: 1-888-670-8889